GBP/USD:
Date: August 3, 2016
D1 Graph: Short Trend
Figures: Formation H&S below, indicates possible end of the downward movement. These levels here are important, if the price does not break above the 1.335-1.34 zone, it would be good place for short by the trend. If the price breaks up above the zone, we will wait for the retest and position long only after retest and confirmation of the formation.
Alternate scenario: if the price does not break up above 1,34 will give us a signal for short by the trend
Technical Indicator:
DEM (14) - In the ficinity, near the overbought zone and turned down for short
ATTENTION:
Fundamental Analysis: Tomorrow is " Super Thursday" - If the interest rates are lowered by the BOE, this will be negative for the currency and around these levels we will look for price action signals for short around the neck of the formation.
If the rates are unchanged, due to the fact that lately the data has not been so bad from the UK economy, and the risks are only at the property sector for now, this will be positive for the pound. We will wait for possible break above the neck of the formation for possible long only after break, retest to position long.
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